Why Should A Request For Notice Of Default Be Recorded?
Now let’s suppose that you, the borrower, do not have sufficient funds over and above the first loan to meet the purchase price, so you have taken out a second loan from the seller, who has agreed that he’ll lend you the difference, so long as he gets some security in exchange. For his protection, he requires that a second mortgage deed or deed of trust be drawn up and recorded, and you agree. The seller, who has given you the second loan, then receives this second mortgage deed or deed of trust, which he holds as does the institutional lender who holds the first loan until you have paid him off completely. Should something occur later so that you cannot make your payments, perhaps you cannot even pay the monthly installments to the bank, much less to the holder of the second loan, the bank will foreclose and sell your property to recoup its original investment. If this were to happen, it would leave the seller, who might be out of the country and unaware of your problems, with a total
